BDS News

Keurig decides to expand in Massachusetts

Real estate expansion and job growth will be on the menu for an industry leader in single-cup coffee and coffee makers, thanks to assistance from Business Development Strategies, Inc.(BDS). BDS has recently assisted Green Mountain Coffee Roasters, Inc.'s (GMCR) Keurig® business unit in securing an estimated $7.7 million government incentives package. The savings will help GMCR consolidate and relocate employees in its current Reading, Wakefield, and Woburn facilities in phases over the next several years to Burlington, with room for anticipated growth.

The incentives package, including municipal Tax Increment Financing (TIF), a Personal Property Tax Exemption, and a state Investment Tax Credit (ITC), was approved under the State's Economic Development Incentive Program (EDIP). It will allow GMCR to remain a pillar of economic growth in Massachusetts.

The Company's multi-million dollar expansion plans are good news for the Town of Burlington and the region, says former Burlington Town Administrator Robert Mercier. "The economic impact of bringing hundreds of new, professional jobs to Burlington plus an estimated $6.1 million in new tax revenue is very significant," explains Mercier, who was instrumental in solidifying local support for the project. "Up to now, the Town has been very selective about the types of companies to which tax incentives are offered. When it came to GMCR's request for a generous package of Tax Increment Financing and a one hundred percent Personal Property Tax Exemption, all of the Town Boards and the Burlington Town Meeting members were overwhelmingly in favor of it."

The incentives package secured by BDS will be used by GMCR to defray the cost of renovating and expanding a vacant building to accommodate the Company's expanding innovation efforts and new product development capabilities, with the ability to construct new buildings in the future. The new campus located in the area of 63 South Avenue in Burlington, was chosen after an extensive search in Massachusetts and neighboring states. The site search was conducted and led by GMCR's real estate advisors, Cushman & Wakefield.

"The significant incentives that the Company received will help create a financial foundation that will drive our future growth. The BDS team was tenacious and assertive, and they kept our project on a fast track to meeting our real estate deadlines throughout the application process,"says John Heller, Vice President Logistics and Real Estate Services for GMCR.

Support from the Burlington Area Chamber of Commerce and Burlington Town Meeting representatives also fueled GMCR and Keurig's success. "Even though Burlington has rarely granted TIFs in the past, the Town officials and Town Meeting voters understood the potential benefit of Keurig's expansion in Burlington and supported the incentives package," explains BDS President Lynn Tokarczyk. "We believe GMCR's relocation of its Keurig® business unit to Burlington will create a powerful engine for economic and job growth in the years to come."

BDS's contributions to job growth in Massachusetts were lauded by Richard C. Lord, President and CEO of Associated Industries of Massachusetts (AIM). "Any company planning to add significant new jobs in the current economy is certainly a valuable asset for the Commonwealth," he says. "BDS's ability to help growing businesses like GMCR secure valuable incentives to stay and expand in Massachusetts helps keep us competitive with other states."